A Case against CSR Initiatives

Arjun Kathayat

doi:10.4236/ojbm.2022.102039

Abstract

There is fuzzy information in the existing body of knowledge regarding what CSR is. CSR initiatives require extensive resources and investment from the organizations and their shareholders. But, interest in implementing CSR initiatives in the contemporary business world is ever-growing. Business leaders cherish CSR initiatives, and consumers also expect business organizations to do more for the greater good of societies and communities. Then again, shareholders may not appreciate the idea of investing wealth and resources in CSR initiatives if CSR initiatives fail to be a proven tool or strategy to enhance financial or organizational performance. The purpose of this article is to investigate the scholarly arguments against CSR initiatives in operations so that business organizations and shareholders can make informed decisions if they should invest resources and wealth in CSR initiatives. In other words, the article explores why business organizations or shareholders should not employ CSR initiatives in their operations for the sustainability and profitability of the organizations. Based on the systematic literature review, the study found that CSR initiatives did not always negatively impact financial or organizational performance. CSR initiatives and financial or organizational performance also had a neutral, mixed, or favorable relationship. The literature review results imply that organizations with CSR initiatives have a greater chance of attaining enhanced financial or organizational performance than those without CSR initiatives. It recommends further research on what percentage of operating costs or marketing costs organizations should invest in CSR initiatives to generate break-even or enhanced financial or organizational performance.

Highlights

Business leaders cherish corporate social responsibility (CSR) initiatives, and consumers expect business organizations to do more for the greater good of societies and communities
The CSR survey completed during the pandemic of COVID-19 reveals that more business leaders (21%) feel large businesses are the most responsible for making the world a better place than American consumers (4%) (AFLAC, 2021: p. 10)
Though this paper primarily focused on making the case against the CSR initiatives for greater profitability and sustainability, as promised at the beginning of the research, it left the door open for alternative views for the discussions

Summary

Introduction

Today’s business world may tend to appreciate CSR as a tool to attain sustainable development Organizations seem to be revaluating their CSR initiatives in light of the unprecedented harm to the societies and international market caused by the pandemic of COVID-19 (Carroll, 2021). According to the 2019 CSR survey by American Family Life Assurance Company (AFLAC), “70% of the participants of the survey think large businesses have a special responsibility for helping to make the world a better place” The CSR survey completed during the pandemic of COVID-19 reveals that more business leaders (21%) feel large businesses are the most responsible for making the world a better place than American consumers (4%) The CSR survey completed during the pandemic of COVID-19 reveals that more business leaders (21%) feel large businesses are the most responsible for making the world a better place than American consumers (4%) (AFLAC, 2021: p. 10)

Objectives

Findings

Discussion

Conclusion